TMI Blog2007 (7) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... 173 of 1998 filed by the assessee-respondent. In both the cases, the following common question of law has been raised:- Whether on facts and circumstances of the case, the Hon ble Income-tax Appellate Tribunal is right in holding that the payments made to Ludhiana Foundry Small Industries Association Regd. are to be disallowed under section 40A(3) particularly when the identity of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. Similarly receipts have been filed before me also and I find that it is a case where the appellant has produced sufficient evidence (including identity of the payee) before the ITO to suggest that the appellant was not having any alternative but to make the payment in cash. It is further seen that this is the first year of the business and as the appellant was new to the above association, I a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble length and find that the controversy raised in both these cases is no longer res intergra. A Division Bench of this Court in the case of Aggarwal Steel Traders v. CIT [2001] 250 ITR 7381 has taken the view that if the assessee is able to furnish the confirmatory letter from the concerned parties with regard to the receipt of cash payments then the case of the assessee might be covered by the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer as well as before the Appellate Assistant Commissioner. The aforesaid evidence was recorded as sufficient to conclude that the assessee did not have any option but to make the payment in cash. It was further noticed that this was the first year of the assessee s business. It is also a relevant fact. The Tribunal has completely ignored this evidence which according to both the Division B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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